Healthcare/Optical Manufacturer
Initial situation
- Highly complex distribution network used
- Lack of visibility and consistent data quality
Objective
- Optimize distribution network for planned growth
- Separate customer and replenishment orders
- to avoid unnecessary freight spend
Agreed actions
- In view of planned volume growth, identify strengths and weakness of current network
- by simulating it within Polygon
- Evaluate multiple alternative future scenarios
Results achieved
- Optimized stock and replenishment levels to support a single central distribution centre
- Direct delivery for urgent orders balanced with cost-effective transport for bulk
- Significant reduction in inventory held and storage cost plus optimized freight costs
Key data
- 35 carriers in Europe
- Freight: € 6 million p.a.